Coronado Homes Go Hot
With the coming of Spring, the Coronado real estate market heats up with the weather. In the first few months of the year, there were very few transactions on the Island (I think 12 total in the first quarter!). That is changing fast. Not only are there significantly more buyers on the Island, but the internet traffic has doubled in April compared to January. In July, the traffic will double again from April, meaning a 400% increase due to seasonality.
There are still a number of Coronado homes and condos that have been sitting on the market since 2008. These properties should be first to sell, as buyers tend to associate value with original list price and will see the seller’s discounting to be an opportunity. Of course this is not necessarily logical. It will be interesting to see what happens to 924 5th Street, a modern style luxury Coronado beach home that went on the market just a couple weeks ago and quickly dropped price to $1,499,999. This is a screaming deal– will buyers leap at it, or will they go for the lesser property that was once listed for $2,000,000? Buyer behavior is not rational, but sometimes those most knowledgeable about the market will exploit these opportunities or help others to do so.
Whatever they choose, buyers of Coronado homes should be in good shape moving forward. The Anderson Real estate forecast just announced that San Diego property values are expected to increase by 50% between now and 2013. These are serious analysts of San Diego real estate– these guys predicted the fall in home values before the market dropped. In other words, they are a credible source! Buyers do the best you can and hold until the market swings; you are sure to make some good money over the next 3-5 years.